Introduction

Accurate tax deduction at source (TDS) is essential for maintaining compliance with statutory laws and for ensuring that employees are not over-taxed due to misclassified salary components.

In uKnowva HRMS, the TDS calculation can be easily customised to suit your organisation’s payroll structure.

One critical part of this process is identifying and excluding salary heads that should not be taxed, such as reimbursements or allowances that are exempt under the Income Tax Act.

uKnowva provides a simple and intuitive way to manage this using the TDS Calculator plugin.

This article will guide you through the step-by-step process of adding non-taxable heads for TDS calculation to streamline payroll compliance.

Step 1: Access the TDS Calculator Plugin Configuration

Begin by logging into your uKnowva account using your administrator credentials.

Once logged in, navigate to the top-right corner of your screen and click on your profile icon. From the dropdown list that appears, click on the uKnowva Configuration option.

This will take you to the configuration page, where you can manage various modules and plugin settings.

From the left side menu, locate and click on the Plugin Manager.

This section lists all the available plugins that can be configured within the HRMS.

You can either scroll through the list or use the search function to locate the TDS Calculator plugin.

Once you find it, click on the plugin name to open the configuration panel.

A pop-up window will appear with different fields and sections related to TDS settings.

Step 2: Add Non-Taxable Salary Heads

Within the TDS Calculator configuration panel, scroll down until you locate the section labeled Non-Taxable Salary Heads.

This section allows you to specify salary components that should be excluded from TDS calculations.

To begin adding components, click on the plus (+) icon located next to the section heading.

This action will insert a new row where you can enter the name of a salary head that qualifies as non-taxable.

You can continue to add multiple non-taxable heads by clicking on the + icon for each new entry.

This gives you flexibility to list out all components that fall under non-taxable categories, such as conveyance allowance, leave travel allowance, meal coupons, or any organisation-specific reimbursements.

If you accidentally add an incorrect entry or want to remove any previously added component, simply click on the bin icon located at the end of the row.

This will instantly remove the unwanted entry from the list.

Once you have added all the necessary non-taxable components, scroll to the bottom of the pop-up window.

Click on the Save button to finalise your changes and activate the updated TDS logic.

If you decide not to proceed with the modifications, you can click on the Cancel button to discard all unsaved changes.

Conclusion

That’s it!

You’ve now successfully added non-taxable heads for TDS calculation in uKnowva HRMS.

By completing this setup, you ensure that salary components exempt under tax laws are accurately excluded from TDS calculations, preventing excess deductions and improving compliance.

This functionality simplifies your payroll process and allows HR teams to confidently manage tax obligations with greater transparency and accuracy.

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